ALERT – ENERGY
Pre – Publication: “Regulation to Optimize the use of Natural Gas and Creation of the Natural Gas Manager”
On Friday, March 27, through Ministerial Resolution No. 102-2020-MINEM/DM, the Ministry of Energy and Mines (“MINEM”) authorized the pre-publication of Draft Supreme Decree that approves the “Regulation to optimize the Use of Natural Gas and Creation of the Natural Gas Manager” (the “Project”).
In this regard, as identified by MINEM in the Statement of Reasons of the Project, it has become evident that consumers have surplus supply and contracted transportation capacity (ship or pay) during the development of the natural gas market, which generates an inefficient use of production and/or transportation capacity, affecting consumers who require gas to carry out their operations. Thus, the Project is applicable to procurement operations for the supply of Natural Gas and/or Natural Gas Transportation Capacity carried out by electric generators in the Primary Market of Natural Gas, and operations in the Secondary Market of Natural Gas.
Among the provisions of greater interest, the Project states the following:
- The creation of the Natural Gas Manager is ordered, which must manage the allocation of the quantity of Natural Gas and/or Transportation Capacity required by the electric generators in the Secondary Market of Natural Gas. COES shall assume the role of Natural Gas Manager for a maximum period of 120 days from the publication of the Supreme Decree approving the Project.
- As the administrator of the Secondary Market of Natural Gas, COES shall identify the needs of Natural Gas and Transportation Capacity required by the electric generators. It shall also determine the average cost of natural gas consumed by electric generators and shall represent such generators in all transactions, among other operational functions.
- COES shall implement the electronic market of production transfer auctions and/or transportation capacity of natural gas (“MECAP”), in accordance with the Regulation on the Secondary Market of Natural Gas and the provisions of the Project.
- OSINERGMIN shall supervise, control and sanction those agents that participate in the Primary and Secondary Market of Natural Gas.
- The Ship or Pay Transportation Guarantee required by Article 110 VII “C” of the Regulation of the Law of Electric Concessions is covered by the Natural Gas Manager, therefore it will not be mandatory for each plant included in the MECAP. Also, for the purposes of article 99 of the Regulation of the Law of Electric Concessions, in the case of Natural Gas Thermoelectric Generators, the price and quality information is provided by the Gas Natural Manager, who shall calculate the variable cost in accordance with the provisions of the Project.
Within a period of no more than 90 calendar days from the publication of the Supreme Decree that shall approve the Project, OSINERGMIN shall approve the statutory regulations that allow the application of the Project and the Regulation on the Secondary Market of Natural Gas.
The interested parties have until April 24 to send their comments to the General Bureau of Hydrocarbons of the Ministry of Energy and Mines, or to the email prepublicacionesdgh@minem.gob.pe
